Seattle budget $16 million in the red

Departments will be asked to cut 3 percent

By CHRIS GRYGIEL, SEATTLEPI.COM STAFF

Published 11:08 am, Wednesday, March 30, 2011

Seattle's operating budget is about $16 million in deficit because of lower than expected tax revenues and anticipated reductions in state and federal aid, city officials said Wednesday.Mayor Mike McGinn on Friday will ask city departments to begin identifying 3 percent across-the-board reductions. However, McGinn said he would prioritize cuts, and not all agencies will see their budgets cut by 3 percent.

Budget director Beth Goldberg said among the pressures on the city budget were an expected reduction of state and federal help by almost $5 million, $4 million in lower utility and other taxes, and $3.5 million in reduced parking meter revenue, because rates did not go up as much as originally planned.

McGinn and Goldberg said the situation was in flux because of ongoing budget discussions at the state and federal level.

"We know that state and federal budgets are both under a great deal of stress," McGinn said.

In November the City Council approved a $925 million operating budget for this year. They had to deal with a $67 million deficit.

The Council used $11.6 million in new monies to mitigate cuts McGinn had proposed. The bulk of that money came from an $8.5 million loan to the city from the Museum of History and Industry, which is flush with cash following the sale of its Montlake building to the state as part of the State Route 520 bridge replacement.

While still having to cut about 300 positions city-wide and make other reductions, the Council was able to do things like add $2.2 million to the mayor's original budget for transportation projects, like services for pedestrians and bicyclists.